Compliance

Requesting Government Appeals Board to Take Contracting Case

On Dec. 8, 2014, FEI’s Committee on Government Business (CGB) wrote a letter to the Armed Services Contract Board of Appeals in support of Combat Support Associates' request for referral to the Board's Senior Deciding Group. The appeals in Combat Support Associates presents an issue of significant precedential importance, namely, does a government cost disallowance claim accrue when the contractor submits an adequate incurred cost submission (ICS) in accordance with Federal Acquisition Regulation (FAR) clause 52.216-7, ALLOWABLE COST AND PAYMENT; or after the Defense Contract Audit Agency (DCAA) audits the underlying supporting data and learns or has reason to learn of the unallowable costs? The CGB urged the Board of Appeals to accept the case because the Combat Associates Decision undermines important policy goals, i.e., it creates a conflict with Board precedent, renders superfluous the “should have known” portion of the FAR definition of claim accrual, creates uncertainty as to when a Government cost disallowance claim accrues, and allows one party — the Government— to suspend indefinitely the running of the statute of limitations until DCAA decides to conduct an accrued cost audit.

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